US-SACU

The US began negotiating a free trade agreement with the Southern African Customs Union — composed of South Africa, Botswana, Namibia, Lesotho and Swaziland — in June 2003. The talks first got stalled in mid-2004, largely because of the US’ extreme and inflexbile demands regarding intellectual property rights. Around July-September 2005, officials started trying to reignite the process by chopping the FTA negotiating items into "bite size pieces". By early 2006, the process was looking like it would still go nowhere and in April that year it was suspended.

From the start, the prospects of a US-SACU accord raised a lot of fears in the subregion, if past US free trade agreements are anything to go by. The demands put forward by the US — especially in terms of investment and intellectual property, including patents on drugs and seeds — would be quite radical for the SACU countries.

While the talks were stalled, the US administration reportedly began looking into the possibility of negotiating bilaterals FTAs with individual sub-Saharan African countries. Washington also proposed that the US and SACU adopt a Trade and Investment Cooperation agreement — more than a TIFA, but less than an FTA — as step towards a full-fledged FTA.

On 16 July 2008, the US Trade Representative and the SACU Trade Ministers signed a Trade and Investment Development Cooperation Agreement. The TIDCA is meant to be a stepping stone to a full FTA, so the process is still in motion.

There has long been talk that the US was preparing to walk away from talks on the proposed agreement, and the speculation finally ended last month when the US government announced that it would not revive negotiations.

Global euphoria over the election of Barack Obama as US President George Bush’s successor has been tempered somewhat by the realisation that the Democrats have not historically been overly keen on free trade.

A high-ranking government official has hinted that the Southern African Customs Union (Sacu) may resume free trade talks with the US following the election of Democratic candidate Barack Obama to America’s high office. Trade and Industry Director-General, Tshediso Matona, says Obama’s election can result in a mutually beneficial trade term with the US.

The South African Customs Unions (Sacu) has formally accepted an offer made by the US government to progress a so-called trade and investment cooperation agreement (Tica), following the breakdown of the more ambitious free-trade agreement (FTA) talks earlier in the year.

The latest round of talks between the US and the five-member Southern African Customs Union (SACU) on a free trade agreement has failed to yield fruits, with many blaming the US for seeking to impose a one-size-fits-all formula.

Today, as US Trade Rep. Robert Portman stepped down to run the Office of Management and Budget, civil society organizations in the US and South Africa are applauding the rejection of the USTR’s efforts to revive the US-Southern Africa Customs Union Free Trade Agreement (US-SACU FTA) negotiations.

US activists for trade justice dubbed the week of April 16 as the week of action. By the end of the week, thanks to key events revealing an unraveling of the Bush administration’s free trade agenda, trade activists campaigning for a more just global trade system celebrated victory.

The US government and the Southern African Customs Union (Sacu) have failed to reach consensus regarding the establishment of a free trade agreement. Unrealistic demands by the US government are said to be at the centre of the failed talks.

Trade experts say the United States is demanding far deeper market access than South Africa is willing to give, particularly in the area of services that are covered by regulatory protection rather than tariffs.

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